GST Collections In October Likely To Cross Rs 1 Lakh Crore Mark For The First Time In Eight Months

GST Collections In October Likely To Cross Rs 1 Lakh Crore Mark For The First Time In Eight MonthsGST collections

In a positive development for the Indian economy which had suffered heavily due to the stringent lockdown imposed earlier this year to control the spread of COVID-19, the goods and services tax (GST) collections are likely to exceed Rs 1 lakh crore mark for the first time in eight months, reports Hindustan Times.

According to the report, the GST revenue accruals in the ongoing month have surged significantly, with over 1.1 million GSTR-3B returns having been filed by businesses across the nation as of 20 October. This marks a massive jump compared to the tally from the first 20 days of October last year when the number of GSTR-3B returns filed in the month stood at 4,85,000.

It should also be noted that in September, the GST collections had posted growth of four per cent year-on-year. This was the first time since March that the GST collections had grown.

Revenue collection in the ongoing month is also likely to increase because of improved enforcement systems such as e-invoicing and use of AI to check revenue leakage. The e-invoicing regime was made effective for businesses with an annual turnover of more than Rs 500 crore a year. Further, the threshold will be brought down to Rs 100 crore from 1 January 2021.